Thomas Hayes, chairman of Great Hill Capital, recently discussed the ongoing market rally with Stuart Barney, linking it to decreasing oil prices and stabilizing yields.
In an interesting move, Apple has teamed up with Klarna, a buy now, pay later (BNPL) payment provider, to offer customers in the U.S. a leasing option for new Apple devices.
The new program, dubbed Apple Upgrade, was announced on Tuesday. It allows customers to lease eligible devices like the iPhone, iPad, Mac, and Apple Watch.
Leasing terms vary: customers can choose between 12 or 24 months for iPhones and Apple Watches, while Mac and iPad leases are available for 24 or 36 months. Pricing starts at $17.99 monthly for iPhones, $11.99 for Apple Watches, $24.99 for Macs, and $11.99 for iPads.
Additionally, Apple is adjusting prices for some of its streaming services, likely due to increasing licensing costs.
According to Apple, customers who sign up for Apple Upgrade can trade in their current devices through the Apple Trade-In program, which may lower their monthly payments during the lease. At the end of the lease, customers can either upgrade to a new model, buy the leased device outright, or return it.
Interestingly, Apple has decided to discontinue the iPhone Upgrade Program and iPhone Payments with the launch of the Apple Upgrade. Previously, these programs allowed eligible customers to finance an iPhone through a 24-month interest-free loan, including options for AppleCare+ and device upgrades after a year.
The collaboration with Klarna comes at a time when more Americans are opting for BNPL solutions to finance their purchases. A recent survey indicated that about 51% of Americans have used installment plans to facilitate online shopping.
Klarna, known for its BNPL services, offers a distinct structure with the Apple Upgrade, which operates more like a lease than a typical BNPL loan.
Customers can access Apple Upgrade via Apple’s official website or at Apple Store locations throughout the United States.
